Client Alert

The Technical Board of the Mexican Institute of Social Welfare (“IMSS” for its acronym in Spanish), published a notice whereby the legal and administrative resources in place are made known in order for the IMSS to facilitate payment of employee-employer fees.

The previous is especially relevant if companies intend to differ payment obligations to the IMSS with the payment of a convened interest.

The Social Welfare act specifically provides the possibility to execute a Partial Payment Agreement for partial installments of IMSS fees, whereby at the employers’ request, the authorities may grant an extension for the payment of debt credited for the concept of fees, penalties, fines, retirement insurance fees, and advanced age severance.

Partial payment Agreements have the following characteristics:

1. 80% of the employer fee may be differed for up to 48 months, with an interest rate of between 1.26% and 1.82%.

2. There is no need for any type of guarantee to subscribe to the agreement. However, if the employer requests a longer period, the employer may guarantee the amount owed.

3. If fines exist, these may be reduced according to the following:

• 60% if the employer does not have expired or payable tax credits, or in a different sense, if the inapplicability of the payments is credited, or if the IMSS has authorized an extension for partial payments.
• 40% if the employer paid the employer fees, during the previous year.

Please contact us in case you are interested in executing a partial payment agreement before the IMSS.

If you have any questions, require our assistance or additional information, please contact us.

Contact

Carlos R. Padilla
cpadilla@cuestacampos.com

www.cuestacampos.com

The above is provided as general information prepared by professionals with regard to the subject matter. This document only refers to the applicable law in Mexico. While every effort has been made to ensure accuracy, no responsibility can be accepted for errors or omissions. The information contained herein should not be relied on as legal, accounting or professional advice being rendered.